Insurance company rejects electrical fuses
Q: The home I’m selling is very old and the main electrical panel has fuses rather than circuit breakers. The buyer’s home inspector says the electrical system is not up to current standards but appears to be safe and functional. The insurance company, however, refuses to write a homeowner’s policy unless the electric panel is upgraded to circuit breakers. They say that fused electrical systems are fire hazards. Who should I believe, the home inspector or the insurance company? — Kevin
A: Insurance companies make this kind of decision not on the basis of electrical expertise. Instead, they navigate their financial ships according to statistics that reveal higher instances of fires in homes with fused electrical systems.
This, however, does not mean that fuses are inherently less safe than circuit breakers. In fact, fuses, when properly installed, are probably more reliable than breakers because they have a quicker response time and are literally fail-safe when overloads occur. These advantages are due to the very simple design of fuses. The only working part is a wire filament. This thin metal strand is able to conduct a limited amount of electricity. When that current level is exceeded, the filament instantly burns up, causing an immediate interruption of power.
Circuit breakers are complex electromagnetic switches, capable of failure in a number of circumstances. Rust damage and overheating, for example, can cause breakers to stick in the “on” position. Additionally, breakers are not designed to trip in all types of overload situations.
The problem with fuses is that their intended purpose can be easily defeated by well-intentioned homeowners and other ill-informed handy-people. This usually occurs in one of two ways: Let’s say the toaster, hair dryer, and stereo are turned on simultaneously, causing the fuse to burn out. Homeowner gets tired of buying fuses, so they replace the 20-amp fuse with a 30-amp fuse. This higher-capacity fuse is much less likely to respond when an overload occurs. Instead, it allows the wires to become hot whenever the circuit is overloaded. The likely result, sooner or later, is a fire.
The second method of tampering with fuses is even more hazardous. This time, homeowner doesn’t bother to buy a 30amp fuse. Instead, he puts a penny (cheaper than a 30 amp fuse) behind the old burned-out fuse. This condition, known as an unfused circuit, nearly guarantees a house fire in the event of an overload. This is why insurance companies prefer circuit breakers.
From a technical standpoint, circuit breakers may not be as reliable as fuses, but owners and renters are unable to tamper with breakers. When they trip, you simply switch them back on. When they trip repeatedly, the only option is to call an electrician.
In today’s world, insurance companies not only write the policies, they write the rules. Like it or not, you may be upgrading your electrical service panel very soon.